Palantir Warns Against Chinese AI While Forecasting Strong 2025 Growth
Key Highlights:
• Palantir advises against DeepSeek AI: The company urges clients, especially in the U.S. government, to avoid using AI models from Chinese startup DeepSeek due to national security concerns.
• U.S. security implications: Federal agencies, including NASA, have reportedly banned the technology.
• Strong financial outlook: Palantir projects 2025 revenue of $3.74 billion–$3.76 billion, surpassing Wall Street estimates.
• Stock surge: Shares jumped 22% after the forecast announcement.
• Growing corporate revenue: Palantir expects U.S. commercial revenue to rise by at least 54% in 2025.
• AI and supply chain solutions: Increasing demand for AI-driven analytics and supply-chain tools could further boost growth.
Full Breakdown
Palantir Technologies has issued a strong warning to its clients about the use of DeepSeek’s AI technology, citing security risks. The company’s Chief Revenue Officer, Ryan Taylor, stated that no U.S. government customer would be able to use the Chinese startup’s AI models, aligning with growing national security concerns in Washington.
Last week, White House press secretary Karoline Leavitt confirmed that U.S. officials were assessing the security implications of DeepSeek’s AI technology. NASA and other federal agencies have already banned employees from using it.
Palantir’s Financial Outlook: Beating Expectations
Alongside its security concerns, Palantir also revealed a strong financial forecast, predicting 2025 revenue of $3.74 billion–$3.76 billion, well above analyst expectations of $3.52 billion. This optimistic outlook caused Palantir’s stock to surge 22% in after-hours trading.
Government contracts remain a key driver of revenue, with over 40% of the company’s Q4 2024 sales coming from U.S. government agencies. However, Palantir is aggressively expanding into the corporate sector, expecting a 54% growth in U.S. commercial revenue to over $1.8 billion in 2025.
AI and Supply Chain Analytics Drive Growth
Palantir’s AI platform (AIP), which helps businesses with AI model testing, debugging, and scenario evaluation, has been a major growth engine. Additionally, new tariffs introduced by former President Trump on Saturday could increase demand for Palantir’s analytics tools in supply chain and logistics management.
The company also reported stronger-than-expected earnings for Q4 2024, posting an adjusted profit of 14 cents per share, beating estimates of 11 cents.
What’s Next?
Palantir remains confident in its future, with government alignment, AI expansion, and supply-chain solutions driving growth. Meanwhile, its stance on DeepSeek’s AI reflects ongoing U.S.-China tech tensions, which could shape the broader AI market in the coming months.
Key Highlights:
• Palantir advises against DeepSeek AI: The company urges clients, especially in the U.S. government, to avoid using AI models from Chinese startup DeepSeek due to national security concerns.
• U.S. security implications: Federal agencies, including NASA, have reportedly banned the technology.
• Strong financial outlook: Palantir projects 2025 revenue of $3.74 billion–$3.76 billion, surpassing Wall Street estimates.
• Stock surge: Shares jumped 22% after the forecast announcement.
• Growing corporate revenue: Palantir expects U.S. commercial revenue to rise by at least 54% in 2025.
• AI and supply chain solutions: Increasing demand for AI-driven analytics and supply-chain tools could further boost growth.
Full Breakdown
Palantir Technologies has issued a strong warning to its clients about the use of DeepSeek’s AI technology, citing security risks. The company’s Chief Revenue Officer, Ryan Taylor, stated that no U.S. government customer would be able to use the Chinese startup’s AI models, aligning with growing national security concerns in Washington.
Last week, White House press secretary Karoline Leavitt confirmed that U.S. officials were assessing the security implications of DeepSeek’s AI technology. NASA and other federal agencies have already banned employees from using it.
Palantir’s Financial Outlook: Beating Expectations
Alongside its security concerns, Palantir also revealed a strong financial forecast, predicting 2025 revenue of $3.74 billion–$3.76 billion, well above analyst expectations of $3.52 billion. This optimistic outlook caused Palantir’s stock to surge 22% in after-hours trading.
Government contracts remain a key driver of revenue, with over 40% of the company’s Q4 2024 sales coming from U.S. government agencies. However, Palantir is aggressively expanding into the corporate sector, expecting a 54% growth in U.S. commercial revenue to over $1.8 billion in 2025.
AI and Supply Chain Analytics Drive Growth
Palantir’s AI platform (AIP), which helps businesses with AI model testing, debugging, and scenario evaluation, has been a major growth engine. Additionally, new tariffs introduced by former President Trump on Saturday could increase demand for Palantir’s analytics tools in supply chain and logistics management.
The company also reported stronger-than-expected earnings for Q4 2024, posting an adjusted profit of 14 cents per share, beating estimates of 11 cents.
What’s Next?
Palantir remains confident in its future, with government alignment, AI expansion, and supply-chain solutions driving growth. Meanwhile, its stance on DeepSeek’s AI reflects ongoing U.S.-China tech tensions, which could shape the broader AI market in the coming months.